20-1006_RD OLSON CONSTRUCTION, INC._Staff MemoMEMORANDUM October 6, 2020
TO: Maria Morris, City Clerk
FROM: Tom Toman, Public Works Director 5
SUBJECT: Grading Bond Reduction — Inn at the Mission 31692 EI Camino Real
This memorandum is authorization to reduce the grading bond by 90% posted for 31692 EI
Camino Real, Grading Permit B17-1134 from $1,101,246.00 to $110,124.00. The grading
and on-site improvements that were secured by the bond have been completed sufficiently
to warrant the reduction of the bond.
A Performance Bond posted with Federal Insurance Company, Bond Number 8239-47-07,
was posted as security for the bond. A copy of the Surety Agreement and Performance
Bond is attached for your information. Please advise Federal Insurance Company of the
surety reduction. If you have any questions, please contact me at (949) 443-6356.
Attachment - Copy of Grading Surety Agreement and Bond
cc: Development Services/Building; file
GRADING SURETY AGREEMENT
I HIS AGREEMENT is made by and between the CITY OF SAN JUAN CAPISTRANO, a
municipal corporation, hereinafter referred to as the "City," and RD Olson Construction Inc.
c/o South Coast Investors ll, LLC, hereinafter referred to as "Developer."
WITNESSETH
WHEREAS, City will issue Precise Grading Permit No B17-1134 to Developer to
construct certain designated improvements upon a portion of that real property located at
31692 EI Camino Real, San Juan Capistrano, CA, such work being commonly referred to
as Plaza Banderas Hotel ("Project").
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.08 requires the
posting of financial security to secure the faithful performance for the grading and
installation of related improvements connected with issuance of grading permits including
the construction of drainage and protection devices and any other corrective work to
remove and eliminate engineering and geological hazards.
WHEREAS, San Juan Capistrano Municipal Code Section 8-2.09 authorizes the
Building Official to require additional bonding as security to ensure against adverse
aesthetic impacts arising from incomplete grading and/or improvements from development
projects which have not been completed.
WHEREAS, the Building Official finds that the proposed Project site is highly
prominent and visible to the community, has unique topographic features or involves
substantial grading of slope areas.
NOW, THEREFORE, in consideration of the premises and promises hereinafter
contained, City and Developer agree as follows:
1. Developer's Improvements Obligations. Developer shall, at its sole cost and
expense, provide and fumish all labor, materials and equipment forthe Project depicted on
the plans entitled "PRECISE GRADING PLAN Plaza BANDERAS" as approved by the City
Engineer, on February 18, 2018. The grading permit and plans, which describe all the
work to be constructed pursuant to this Agreement, are on file in the office of the City's
Building Official.
Grading Surety Agreement, Permit # B17-1134 Page 1 of 10
6I 147.U210024835741.2
2. Developer's Security. Developer shall provide a cash deposit, irrevocable
letter of credit, certificate of deposit or a bond by a duly authorized corporate surety subject
to the approval of the City Attorney, or as approved by the City Engineer, to secure
Developer's improvement obligations required under this Agreement ("Security).
The amount of the Security shall be $1,101,246 for all onsite grading improvements
as approved by the City Engineer. This Security shall also serve as security for restoration
of the Project site. A copy of the performance bond form, as approved by the City
Attorney, is attached hereto as Exhibit "C" and incorporated herein by this reference.
Copies of approved irrevocable letter of credit forms and certificate of deposit form are
available upon request.
3. Completion of Improvements. To ensure the protection of the public safety,
health and welfare, Developer shall construct the Project in accordance with the schedule
asset forth in Exhibit "A", and the conditions asset forth in Exhibit "B". Exhibits "A" and "B"
are attached hereto and incorporated herein by this reference.
4. Developer Default. In the event Developer does not complete the required
improvements, including erosion and silt control measures within the time required, using
Best Management Practices (BMP) in implementing a Water Quality Management Plan in
full compliance with Orange County National Pollutant Discharge Elimination System
(NPDES) Storm Water Implementation Agreement and San Juan Capistrano Municipal
Code Section 8-14, or abandons the Project site, or suspends work for more than twenty
(20) working days without written approval of the City, City shall have the right to
immediately declare a default and to make demand on Developer's surety for performance
of all obligations under this Agreement.
5. Restoration of Site. San Juan Capistrano Municipal Code Section 8-2.09
allows the City to require bonding as security to ensure against adverse aesthetic impacts
arising from incomplete grading, drainage and/or improvements which includes illicit non -
storm drain water discharge. The purpose of this security shall be to restore the property to
a safe and acceptable condition in the event the Developer defaults. This restoration shall
include but not be limited to the following:
A. Dismantle and/or demolish improvements;
B. Grade property to its original contours as shown on the approved
grading plans.
C. Remove all debris and construction materials from the site; and
Grading Surety Agreement, Permit # B17-1134 Page 2 of 10
61147.02100@4R35741.2
D. Install erosion and silt control devices, including hydroseeding, to
insure a uniform vegetative cover, or equivalent stabilization
measures which include the use of such Best Management Practices
as blankets, fiber matrices, catch basin filters, or other erosion
resistant soil coverings or treatments to satisfaction of the Director of
Engineering and Building.
6. Attorney's Fees. Developer agrees to pay City such sum as the court may
judge as reasonable for the legal services of an attorney representing the City in an action
brought to enforce or interpret the obligations of this agreement, and such sum shall be
made a part of ariy judgment in such action against Developer if such action is determined
in favor of the City.
7. Developer's Work in Safe Condition. Developer shall perform all work in a
safe workmanlike manner and shall take such precautions as may be necessary to warn
and protect the public from any dangerous condition caused by the Project.
S. Liability. City, its officials,. officers, employees, agents, and volunteers shall
not be liable for any injury to persons or property occasioned by reason of the acts or
omissions of Developer, its agents or employees in the performance of this Agreement.
Developer further agrees to protect, indemnify, and hold harmless City, its officials, officers,
employees, agents, and volunteers from any and all claims, demands, causes of action,
liability or loss of any sort, because of, or arising out of, the alleged acts or omissions of
Developer, its agents or employees in the performance of this Agreement, including all
claims, demands; causes of action, liability, or loss because of, or arising out of, in whole or
in part, the design or construction of the Project. This indemnification and agreement to
hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said Project, and in addition, to adjacent
property owners as a consequence of the diversion of waters from the design or
construction of drainage systems, streets and other improvements.
SIGNATURES ON FOLLOWING PAGE
Grading Surety Agreement, Permit # 617-1134 Page 3 of 10
61147.02100"24835741.2
SIGNATURE PAGE TO GRADING SURETY AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO AND
RD Olson Construction Inc, c/o South Coast Investors 11, LLC
IN WITNESS WHEREOF, the parties have executed this Agreement as of
March 2nd , 2018
_ 1
CITY OF SAP! JUAN CAPISTRANO RD Olson Co�struction Inc. c/o South
By: Coast investo t�l� LLLC
Carlos Yado, Building Official By: i
Dated:
Approved as to Form:
Jeff Ballinger, City Attorney
Grading Surety Agreement, Permit # 817-1134
61147.02100_4955741.2
Printed Name <4t tt 2 0 i l: fT�
Title a • V, p
Printed Name
Page 4 of 10
EXHIBIT"A"
SCHEDULE FOR COMPLETION OF IMPROVEMEMTS
Task
Completion Date
1.
Pad grades
6/1/18
2.
Storm drain
811118
3.
Curb & gutter
411/19
4.
Parking lot
611/19
Grading Surety Agreement, Permit # B17-1134 Page 5 of 10
61147.021 OUNK357412
EXHIBIT "B"
CONDITIONS FOR COMPLETION OF IMPROVEMENTS
1. The grading for this project shall be in strict conformance with the grading plans as
well as the San Juan Capistrano Municipal Code.
2. Grading operations shall commence within fourteen (14) calendar days after
issuance of Grading Permit.
Winter grading will be conducted in strict accordance with the dynamic erosion and
silt control plan submitted by the Developer, and approved by the City. This erosion
and silt control plan reflects erosion and silt mitigation measures for expected
grading conditions as the work progresses through the winter season and shall not
be amended except with the permission of the City.
In the event Developer does not wish to implement winter grading, or permission for
winter grading is rescinded, static erosion and silt control plans reflecting current
conditions of grading shall be submitted within ten (10) days of cessation of work.
These plans shall:
1. Identify all pollutant sources including sources of sediment that may affect
the quality of storm water discharges associated with the construction
activity.
2. Include the erosion and sediment control planting and hydroseeding to
insure a uniform vegetative coveror equivalent stabilization measures which
include the use of such Best Management Practices as blankets, fiber
matrices, catch basin filters or other erosion resistant soil covering or
treatments to the satisfaction of the City Engineer.
3. Suspension in excess of twenty (20) working days of work authorized by approved
grading plans and grading permit for subject property, including erosion and
sediment control measures and landscaping and irrigation, shall constitute default of
this agreement.
4_ The supervising civil engineer and soils engineer shall file biweekly progress reports
of all grading operations with the Building Official. An interim compaction report, for
that work completed at the time work is suspended for the rainy season, shall be
filed with the Building Official. This interim report shall conform to the grading code
requirements for final compaction reports.
Grading Surety Agreement, Permit# B17-1134 Page 6 of 10
61147,02 IW*148357412 '
5. Contractor shall control dust to the satisfaction of the Building Official or his deputy.
During grading, Contractor shall keep water truck on site and dampen work area,
grounds, and loaded trucks.
6. Grading operations suspended during the rainy season shall be resumed no later
than 15 days from date of suspension termination.
7. Installation of interim erosion and sediment control devices and systems shall
commence within seven (7) days after rough grade certification has been approved
by the Building Official and must be completed within fifteen (15) days of rough grad
certification. Final erosion and sediment controls devices, planting, landscaping and
irrigation systems shall be installed prior to final inspection of the grading permit.
6. All work shall be performed in strict observation of the Hours of Operation in
accordance with San Juan Capistrano Municipal Code Section 5-1.03.
9. Contractor shall adhere to conditions of haul route permit and encroachment permit
issued by the City Engineer.
10. Parking for construction crew is to be on-site.
11. Exoneration of Security: Developer's security shall be reduced to 90% upon signoff
of precise grading permit. No security given by Developer shall be released until the
expiration of the warranty period and until any claims filed during the warranty
period have been settled. Nothing herein shall limit the City's rights nor the
Developer or surety's obligations under this Agreement.
12. Warranty Period: 1 year from permit signoff by City.
Grading Surety Agreement, Permit !a B17-1134 Page 7 of 10
61147.02100'24535741.2
BOND NO. 8238-47-07
INITIAL PREMIUM: $8,343.00
SUBJECT TO RENEWAL
GRADING SURETY AGREEMENT
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
R.D. Olson Construction, Inc.
WHEREAS the City of San Juan Capistrano (`City") and c%South Coast Investors II, LLC
("Principal"), have executed an agreement for work consisting of, but not limited to, the famishing
of all labor, materials, tools, equipment, services, and incidentals for all grading and installation of
related improvements for Plaza Banderas BI', -1134 ("the Work");
WHEREAS, the Work to be performed by Principal is more particularly set forth in
that certain Grading Surety Agreement dated March 2nd 2018 ("Agreement"), which
Agreement is incorporated herein by this reference; and
WHEREAS, Principal is required by the Agreement to provide a good and sufficient
bond fon performance of the Agreement, and to guarantee and warranty the Work performed
thereunder.
NOW, THEREFORE, Principal and __—Federal Insurance Company as surety
("Surety"), a corporation organized and existing under the laws ofthe—State of Indiana , and
duly authorized to transact business under the laws of the State of California, are held and firmly
bound unto City in the sum of One Million One Hundred One Thousand Two Hundred Forty Six
dollars (S1,I01,246), for which amount well and truly to be made, we bind ourselves, our heirs,
executors, administrators, successors or assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs,
executors, administrators, successors or assigns, shall in all things stand to and abide by, and well
and truly keep and perform the covenants, conditions, agreements, guarantees, warranties and
provisions in the Agreementand any alteration thereof made as therein provided, on his or their part,
to be kept and performed at the time and in the. manner therein specified, and in all respects
according to their intent and meaning, and shall indemnify and save harmless City, its officers,
employees, and agents, as therein stipulated in the Agreement, then this obligation,shall becomenull
and void; otherwise it shall be and remain in full force and effect.,
As part of the obligation secured hereby, and in addition to the face amount specified
therefor, there shalt be included costs and reasonable expenses and fees, including reasonable
attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and
included in any judgment rendered.
Surety, for value received, hereby stipulates and agrees that no change, extension of
time, alteration, or addition to the terms of the Agreement, or to any plans, profiles, and
specifications related thereto, or to the Work to be performed thereunder, shall in any way affect its
Grading Surety Agreement, Permit # B17-1134 Page 8 of 10
flr 14Te7.100 24335741.7
obligations on this bond, and it does hereby waive notice of any such change, extension of time,
alteration, or addition to the terms of the Agreement, or to the Work or to the specifications.
IN WITNESS WHEREOF, the seal. if any, and signature of the Principal is hereto
affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly
authorized Attorney -in -Fact at, Laguna Hills, CA _,this _7th -day of March
2018 .
R.D. Olson C ruction, Inc.
clo South as I vectors ll, LLC Federal Insurance Company
(print name)
Surety
BY
Attomey-in-Fact
Linda D. Coals
(prind name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION BY
PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF
ATTORNEY TO LOCAI, REPRESENTATIVES OF THE SURETY MUST BE
ATTACHED TO THIS BOND.
Grading Surety Agreement, Permit # B17-1134
6114T02 M24835741,2
Page 8 of 10
Notary Acknowledg miert
A notary pubic or other officer completing this certificate
[document
erifies only the identity of the individual who signed the
to which this certificate is attached, and not theruthfulness, accuracy, or validity of that document. _ J
STATE OF CALIFORNIA
COUNTY OF
Ong 1 -7 20L, before me, V ^GVW L�� Nota Public,
rypersonalty
appeared �(2 O (I . UA9�1 who proved to me on the basis of satisfactory
evidence to be the person(p) whose name(G is are subscribed to the within instrument and acknowledged to me
that.be (they executed the same in ' heir authorized capacity(ies), and that by heirsignature(s)
on the trument the person(fi) or the en ty upon behalf of which the person(,S) acted, exe ed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is
true and correct-
KATN1 SNORT WITNESS my hand and official seat.
Commission M 2115535
aNotary PUDIic - Cautb.nia i
Z
Orange County
z it n 14, 2019
OPTIONAL
Though the information below is not required bylaw, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ Individual
❑ Corporate Officer
Taiet:) _
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -in -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Persons) Or Emity(tes)
Grading Surety Agreement. Permit # B17-1134
6114Z02100'14835741 2
Title or Type of Document
- um --
Number of Pages
_.
Oete of Document
Slgner(s) ONer Tnan Named Above
Page 10 of 10
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of Califomia
County of pp Orange )
On (11 all! r�.aC I before me,
Date
personally appeared Linda D. Coats
Summer L. Reyes, Notary Public
Here Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in
his/her/their authorized capacity(es), and that by his/her/their signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
SUMMER L. REYES
Notary Public - California
<(%
.-� - Orange County i
Z Commission K 2158864 '-
My Comm. Er fres Jul 29.2C20
Place Notary Seal Above
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signaturei,r�v1
S gna of Notary Public
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(fes) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s),
❑ Partner — ❑ Limited C General
❑ Individual 7 Attorney in Fact
Trustee ❑ Guardian or Conservator
Other:
Signer Is Representing:
Signer's Name:
Corporate Officer — Title(s):
Partner — ❑ Limited ❑ General
J Individual ❑ Attorney in Fact
Cl Trustee ❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
.;�
02014 National Notary Association • www.NationaiNotary.org • 1 -800 -US NOTARY (1-800-676-6827) Rem #5907
Chubb POWER Federal Insurance Company Attn: Surety Department
Sure OF Vigilant Insurance Company 16 Mountain View Road
Surety ATTORNEY pacific Indemnity Company Warren, NJ 07059
Know All by These Presents, That FEDERAL INSURANCE COMPANY, an Indiana corporation, VIGILANT INSURANCE
COMPANY, a New York corporation, and PACIFIC INDEMNITY COMPANY, a Wisconsin corporation, do each hereby constitute and
appoint Linda D. Coats, Matthew J. Coats and Summer Reyes of Laguna Hills, California
each as their true and Iawm Atlomay. In. Factto overate under such designation M Weir nam9a end 10aft their mrpomta seals to and deliver icrand on their beharas surety
thereon or otherwise. bonds and Undertakings and ether writings obligatory in the nature thereof (quer than bat bontla) given or executed in We course of business. and any
instruments amenduq or ageing the same, and mnsemis tD the modfimtl in orafterallon of any Insbumentrererted to in said bads a obligations.
N Wltil Whd f, Said FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY have each executed and�tl25tad
these Presents and affixed their corporate Santa cn this 1 dayof June, 2015.
C ell,
Dawn M. (.morns. Assistant &acatery �.Dawd a Nnem Jr vew P...ewe,a
c1u>>
STATE OF NEW JERSEY
County of Somerset
Orionis let day of June, 2015 before me, a Notary Public of New Jersey. Petsona►y came Dawn NL CnlenS. m me known to be Assistant Severaly of FEDERAL
INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY, the compardeawhiCh executed the foreggng Powaof Ac mey, andthe
Sac Dain M. DOOMS. being by ma duty sworn, dM depose arra say that she is Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE
COMPANY, and PACIFIC INDEMNITY COMPANY and knows the corporate seals thereof, that ire $eals atoned to the foregoing Power of Attorney am such corporate seals
and were thereb affixed by authority of the By. Laws of mid Companies; and that she signed said Power of Attorney as Assistant Secretary of said Compardes by like eutlartty,
and than she is acquaimed ri
with David 8. Nos, Jr., and knows him to be Vice President of mkt Companies; and that the signature q David B. NOds, Jr., subscabed to cold
Parer of Attorney is In the genuine handwriting in9 0l DB. Noah, Jr., and wareta
S thesubscribedbyauarority of mist By - Laws and In deponent's presence.
Notarial $ml
�T,wy KATHEMNE J. ADELAAR
NOTARY PUBLIC OFNEW JERSEY
X06! iGNa 2318IIBS xni
COmmISSIOR EMITS Judy tis, 2Dt9 notary Pubrc
CERTIFICATION
EKi from the By- Laws of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY.
'ATI Powers of adomey for and on behalf of the Company may and shall be executed in the more and on behalf d tho Company, eshar by the Chairman or the
president or a Vim President a an Assistant Vice President, jointly wire the Secretary or an Assistant Secretary, under Weir restmob a dmignadom. The
signature of such ommrs may be engraved, printed or lithagmPhed. The Signature of each of the fgrowing OlEmn c. Chairman. President any Vim Pmsiden4 any
Assistant Vice President any Sec clary, any Asscmt Secretary and the seal Or the Company may be aFced by famimlle to a
certirmle reladng Ulerato I dry ander de atomey, a m arty
span comp Amletam Seerdariee a Attorneys- in- Fact for purposes only q exemti� and edeating bonds and undertakings and other
writings oNigecy In the mance thereof, and any ouch power of altomey or certRcate hearing such feoimlle signature m famimle seal shall be valid arra binding
upon the Company arc any such power an executed acrd candied by such facsimile signature and facsimile seal shall be valid and binding upon the Company
with nispect toarrybond a undertaking to which R is attached -
1, Daum M. Chbma, Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY phe'Companinj
do hereby certify that
01 the foregoing extlaet gthe By- Laws of thin Companies la tree and correct,
(d) the Companies are duly licensed and suthertzed to transact surety business In ell W Of the United Slates OfAmenca and Us District of Columbia and are
authorized by the U.S. Treasury Department further, Federal and Vigilant are licensed in Bre U.S. Virgin Islands, and Federal Is Limned hi Guam, Puerto
Rim, and eachof bre Provinces of Canada except Prince Edward Island; and
(ii) the foregoing PowerefAnorrley is true, correct and In NII fare and effect
Given under my nandand seals m mid companies st warner, NJ this 7th day of March 2018
Dawn M. Caoma, ASsistamSecaery
IN THE EVENT YOU WISH TO NOTIFY US OF A CLAIM, VERIFYTHE AUIIRNTIGTY OF TMS BOND OR NOTIFYUS OF ANYOTIIFR NATTER. PLEASE CONTACTUS ATADDREm
Fmn 15-10.0225& U GEN CONSENT (rca. 12.14)